Correlation Between Bank of China and Dongrui Food
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By analyzing existing cross correlation between Bank of China and Dongrui Food Group, you can compare the effects of market volatilities on Bank of China and Dongrui Food and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bank of China with a short position of Dongrui Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Dongrui Food.
Diversification Opportunities for Bank of China and Dongrui Food
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Dongrui is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Dongrui Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongrui Food Group and Bank of China is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bank of China are associated (or correlated) with Dongrui Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongrui Food Group has no effect on the direction of Bank of China i.e., Bank of China and Dongrui Food go up and down completely randomly.
Pair Corralation between Bank of China and Dongrui Food
Assuming the 90 days trading horizon Bank of China is expected to generate 0.55 times more return on investment than Dongrui Food. However, Bank of China is 1.81 times less risky than Dongrui Food. It trades about 0.09 of its potential returns per unit of risk. Dongrui Food Group is currently generating about -0.04 per unit of risk. If you would invest 296.00 in Bank of China on September 5, 2024 and sell it today you would earn a total of 213.00 from holding Bank of China or generate 71.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Dongrui Food Group
Performance |
| Timeline |
| Bank of China |
| Dongrui Food Group |
Bank of China and Dongrui Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Dongrui Food
The main advantage of trading using opposite Bank of China and Dongrui Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Dongrui Food can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dongrui Food will offset losses from the drop in Dongrui Food's long position.| Bank of China vs. Jafron Biomedical Co | Bank of China vs. Dezhan HealthCare Co | Bank of China vs. Ningbo Ligong Online | Bank of China vs. Guangzhou Boji Medical |
| Dongrui Food vs. Agricultural Bank of | Dongrui Food vs. Industrial and Commercial | Dongrui Food vs. Bank of China | Dongrui Food vs. China Construction Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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